SustainableEnergyfor aGrowing chinaHow Advanced Science can help secure the country’s energy futureIN Partnership with
1Table of ContentsIntroduction	 Page 	 3China’s 3Energy Challenges	 Page	 8What China Is Doing	 Page 	 14A Vision for the ...
2
13IntroductionScientific and techni-cal innovation will be keyto helping China meetits soaring demand forenergy, while pro...
by giving full play to the fundamentalrole of the market in the allocationof resources. All projects listed inthe national...
5CHINA POPULATION ANDENERGY CONSUMPTIONSource: UN World Population Prospects 2010 and FAOStat; EIAPOPULATION—HIGHVARIABLE ...
comes from fossil fuels. However,the government recently commit-ted itself to achieving 15% of totalenergy consumption fro...
7Grid, and China Southern PowerGrid; and multinational corpora-tions, including integrated energycompanies such as BP and ...
China’s 3EnergyChallengesNo.1The “world’sfactory floor”is becomingthe “world’sshopping mall.”Nobody knows the exact day or...
9PROJECTIONS:USING BUSINESS-AS-USUAL ASSUMPTIONS*ASSUMING AGGRESSIVE ENERGY-EFFICIENCY IMPROVEMENTS**Sources: *China Elect...
10No.2Chinawill bedependent onfossil fuelsfor theforeseeablefuture.Given China’s significant coal re-serves, it is likely ...
11China Depends on Coal for about 80%of its electricity generation.TOTAL ENERGYCONSUMPTION BY FUELQUADRILLION BTUsSources:...
No.3China’sfossil fueldependencecarries heavyenvironmentalcosts.China’s heavy reliance on fossil fuelsis putting significa...
1350403020100Sources: History: U.S. Energy Information Administration (EIA); International Energy Statistics database (aso...
China recognizes that its energyneeds can only be met by an “all ofthe above” energy strategy. It mustinclude conservation...
methods, mandating better automo-bile fuel economy, and more. “Start-ing in 2005 the government reallybegan paying attenti...
much energy they procure, howthey use energy, and where energyis leaking.In the past, however, authoritiesconducted energy...
China received energy conservationawards from local governments. “Atthe beginning of every year, fac-tories joining the en...
19eggs on the outskirts of Beijing thathas built a biomass system thatconverts its trash into electricity.China also uses ...
On the more densely popu-lated eastern coast, the policy hasbeen to encourage distributedsolar energy production via roof-...
21farm uses a number of DuPontproducts, including silver metal-lization pastes for increased poweroutput and backsheet mat...
RenewablePartnershipsHot water notwithstanding, coal stilldominates China’s energy portfolio.Coal-fired power plants gener...
23wave power plants.Smart grid technology is an-other major growth area. GE EnergyServices and State Grid, China’sleading ...
pec and Oklahoma-based DevonEnergy signed a $2.5 billion deal toexplore for oil and gas in emergingshale fields in North A...
25China has invested some $65billionin energy projects worldwide,ranging from oil sands productionin Alberta to energy equ...
A new science is needed to secureChina’s energy future. The countryneeds to conserve today’s resourceswhile developing the...
27CAD) to model lightweight automo-tive parts. Fuel consumption goesdown significantly as you subtractfrom the total weigh...
the actual oil pan. All this computermodeling allows the engineers topredict failure points and adjust theirdesigns to avo...
29tending lifetime, and reducingoverall installation costs can thephotovoltaic industry providethe cheapest electricity mo...
PV panels are now at work in theworld’s largest solar-power plant, asolar farm in western China.A major challenge facing t...
31compared with the production of atypical petroleum-based substitutesuch as nylon.Sorona® renewably sourced fiberis used ...
China’s economic growth dependson its ability to power that growth.The country faces huge challengesin building a sustaina...
IN Partnership with:
Sustainable Energy for a Growing China: How advanced science can help secure the country’s energy future
Upcoming SlideShare
Loading in …5
×

Sustainable Energy for a Growing China: How advanced science can help secure the country’s energy future

745 views

Published on

Visit http://www.DuPont.com/FutureChina to learn more about how DuPont collaborates with partners in China to solve challenges related to renewable energy solutions.

China accounts for 20.7% of global energy demand, and Chinese energy consumption is growing four times faster than that of the rest of the world. China’s energy consumption is driven mainly by its vast population and by its rapidly growing economy.

China recognizes that sustainable development is not possible without clean and renewable energy. Scientific and technical innovation will be key to helping China meet its soaring energy demand, while protecting its environment.

DuPont, along with a global network of public and private stakeholders is applying advanced science to create innovative renewable energy solutions with the goal of reshaping China’s overall energy economy.

This white paper was created by Fortune Industry Perspectives and DuPont. It is the second in a series showcasing sustainable development thought leadership, which will help inform the discussions at the 2013 Fortune Global Forum, June 6–8, 2013, in Chengdu, China.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
745
On SlideShare
0
From Embeds
0
Number of Embeds
35
Actions
Shares
0
Downloads
31
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Sustainable Energy for a Growing China: How advanced science can help secure the country’s energy future

  1. 1. SustainableEnergyfor aGrowing chinaHow Advanced Science can help secure the country’s energy futureIN Partnership with
  2. 2. 1Table of ContentsIntroduction Page 3China’s 3Energy Challenges Page 8What China Is Doing Page 14A Vision for the Future Page 26Conclusion Page 32This white paper was created by Fortune IndustryPerspectives and DuPont. It is the second ofa series showcasing sustainable developmentthought leadership, which will help inform thediscussions at the 2013 Fortune Global Forum, June 6-8, 2013, in Chengdu,China. For more information on sustainable development in China, pleasevisit www.DuPont.com/FortuneGlobalForum.proud to sponsor theCover photograph: Li Gen / imaginechina
  3. 3. 2
  4. 4. 13IntroductionScientific and techni-cal innovation will be keyto helping China meetits soaring demand forenergy, while protecting its fragileenvironment and meeting its inter-national obligations to help mitigateglobal climate change. This will bea journey, not a step change. Chinawill continue to consume large quan-tities of fossil fuels while it works tocreate an economy based on clean,renewable energy. As a result, Chinawill be the world’s energy laboratoryfor decades to come.China’s GDP is expected to nearlydouble between now and 2020,according to government data, driv-ing extraordinary growth in energyconsumption. This rapid growth willprofoundly reshape internationalenergy markets in coming years.Chinese energy demand will likelyboost energy prices and stimulatescientific innovation across the globalenergy sector, from fossil fuels torenewables. “As new industries suchas photovoltaic manufacturing de-velop in China, they also impact therest of the world,” says DuPont chairand CEO Ellen Kullman.China’s increasing dependenceon foreign oil and gas is a significantfactor driving government efforts todiversify the country’s energy port-folio. Around 50% of total Chineseenergy production comes fromimported fossil fuels, according tothe Economist Intelligence Unit. Al-though China was a net oil exporteruntil the early 1990s, the country iscurrently the world’s second biggestoil importer after the United States.China has been a net coal importersince 2007, and Chinese importsof liquified natural gas (LNG) havealso risen sharply in recent years,according to research by LawrenceBerkeley National Laboratory.China is committed to findingmarket-based solutions to its energyneeds. Under President Xi Jinping,China recently announced plans toend its system of controlled pric-ing for domestic coal, effectivelymarketizing an important sector ofthe Chinese economy and signalingopenness to market-based ap-proaches in other areas of energypolicy. According to the govern-ment’s official energy policy whitepaper, released in October 2012:“China is actively promoting market-oriented reform in the energy sector
  5. 5. by giving full play to the fundamentalrole of the market in the allocationof resources. All projects listed inthe national energy program, unlessforbidden by laws or regulations, areopen to private capital.”The world’s most populous nationis also the biggest energy con-sumer on the planet. In 1982, Chinaconsumed around 500 million tonsof coal-equivalent energy, accordingto Li Junfeng, head of the NationalClimate Change Strategy ResearchCenter. Today annual consumptionis close to 4 billion tons of standardcoal. Back then China had only72.36 gigawatts of installed powergeneration capacity. Installed capac-ity is close to 1.16 terawatts, andnational energy consumption hasincreased sevenfold, surpassing theUnited States.China’s energy consumption isdriven mainly by its vast populationand by its rapidly growing economy.China has a low rate of populationincrease by international standardsdue to the one-child policy andother efforts to control populationgrowth. With an annual growth rateof 0.481%, China’s total populationis currently increasing by about 6.5million people every year, accordingto the CIA World Factbook. Mean-while, GDP per capita has grownmore than 18-fold in the last threedecades, from less than $300 in theearly 1980s to nearly $6,000 today.“Population growth and economicdevelopment are the two things thathave led to unstoppable growth inenergy consumption,” says Li.Today, China accounts for 20.7%of global energy demand, andChinese energy consumption isgrowing four times faster than thatof the rest of the world. China isalready the world’s largest producerand consumer of electricity, thethird-largest global oil consumer, andthe fifth-largest consumer of naturalgas, according to the BerkeleyEnergy & Resources Collaborative.No surprise, then, that China is alsothe largest sovereign contributor togreenhouse gases.China recognizes that sustainabledevelopment is not possible withoutclean, renewable energy. Renew-ables, including hydroelectric andnuclear power, currently accountfor about 9% of the country’s totalenergy portfolio, according to World-watch Institute. The remaining 91%4China recognizes thatsustainable developmentis not possible without clean,renewable energy.
  6. 6. 5CHINA POPULATION ANDENERGY CONSUMPTIONSource: UN World Population Prospects 2010 and FAOStat; EIAPOPULATION—HIGHVARIABLE FERTILITYQUADRILLION BTUsTOTAL ENERGYCONSUMPTION’10 ’13 ’15 ’20 ’25 ’301.451.401.351.300200150100500BILLIONS
  7. 7. comes from fossil fuels. However,the government recently commit-ted itself to achieving 15% of totalenergy consumption from non-fossilfuels by 2020. (More than half ofthat 15% is expected to come fromnew hydro capacity.) China led theworld with $52 billion in clean-energyinvestment in 2011, according tothe United Nations. It is already oneof the world’s largest wind-powerproducers and a leader in solartechnology. China has ambitiousplans to build out its already impres-sive hydroelectric sector and is alsoincreasing its nuclear capacity, witha renewed emphasis on safety.Although China is the world’sleading hydropower producer, thecountry currently uses only a fractionof its total hydro capacity. Like manyother countries, China faces hugechallenges balancing the benefitsof hydropower against its significantenvironmental and social costs. Go-ing forward, the country must figureout how to increase hydropowerproduction without putting excessivestress on the environment, particu-larly water resources that are alsoneeded for agriculture to feed a hugeand growing population.Nuclear energy is also an impor-tant part of China’s overall energystrategy. China recently completeda comprehensive review of nuclearsafety procedures, prompted by the2011 Fukushima disaster in Japan.With assistance from Westinghouseand other multinationals, Chinaplans to build numerous new nuclearfacilities nationwide over the nextfew years, with the goal of increas-ing the country’s total nuclear powergeneration to 70 gigawatts by 2020.The government has announced thatit will favor remote coastal locationsfor new reactors and will scale backon plans to build reactors near majorelectricity demand centers inland.A global network of public andprivate stakeholders are working toreshape China’s energy economy.Key players include Chinese govern-ment agencies such as the NationalEnergy Administration under theNational Development and ReformCommission; scientists and engi-neers at institutions ranging fromTsinghua University in Beijing tothe U.S. government’s LawrenceLivermore Lab, state-owned energyproducers and distributors suchas CNPC, Sinopec, CNOOC, State6Although China is the world’sleading hydropower producer,the country currently uses only 30%of its total hydro capacity.
  8. 8. 7Grid, and China Southern PowerGrid; and multinational corpora-tions, including integrated energycompanies such as BP and Exxon,major engineering firms like GE andWestinghouse, and applied sciencecompanies like DuPont.This paper examines the currentstate of play in the world’s energylaboratory. It presents three keychallenges for the Chinese energysector, including the shift from anindustrial economy to one increas-ingly driven by consumer spending,China’s continued dependence onfossil fuels, and environmental pres-sures resulting from the country’srapid growth.Next, it describes the Chinesegovernment’s “all of the above”energy strategy, which includesconservation; restructuring the en-ergy production system; and smart,sustainable exploitation of all energysources, including fossil fuels, hydro,nuclear, and renewables.Finally, it explains how DuPontand other international companiesare working in concert with govern-ment and private-sector partners inChina to help develop sustainableenergy solutions that can power thecountry’s growth and maintain thehealth and prosperity of its citizensgoing forward.TPG/gettyimages
  9. 9. China’s 3EnergyChallengesNo.1The “world’sfactory floor”is becomingthe “world’sshopping mall.”Nobody knows the exact day orthe precise place, but at somepoint in 2011, a Chinese citizenmigrated from a rural district to oneof the country’s fast-growing cities,and China’s urbanization rate hit50% for the first time in history. Ur-banization rates have continued torise since then: Every year, around20 million Chinese move to the cit-ies, seeking jobs and the amenitiesof urban life. Today China has morethan 170 cities with populations ofmore than a million, and at leasteight megacities with populationsthat exceed 10 million. Urbanization has major implica-tions for China’s energy sector. In2012, Chinese consumers, mostof whom live in cities, generatedhalf the country’s GDP growth.“Urban consumers don’t just wantfood and a place to live,” explainsShaun Rein, managing director ofthe China Market Research Group,a consulting firm based in Shang-hai. “They want to drive cars, notbicycles. They want to live comfort-ably in houses with hot water andair-conditioning.” In the modern era, China’seconomic growth and energyconsumption have been drivenmainly by industrial production.“The industrial sector accountedfor 74% of China’s total deliveredenergy consumption in 2008, andits share remains above two-thirdsthrough 2035,” according to projec-tions by the U.S. Energy InformationAdministration. But as millions ofChinese enter the middle class, theyare living longer, buying more cars,moving into bigger houses thatneed more heat and air-condition-ing, and purchasing more energy-hungry appliances. In 2010, Chinaovertook the U.S. to become theworld’s biggest automotive market,according to the China Associationof Automobile Manufacturers. Asa result of all these shifts, China’s1.3 billion consumers are increas-ingly driving the country’s soaringdemand for energy.8
  10. 10. 9PROJECTIONS:USING BUSINESS-AS-USUAL ASSUMPTIONS*ASSUMING AGGRESSIVE ENERGY-EFFICIENCY IMPROVEMENTS**Sources: *China Electricity Council**China Energy Group (Lawrence Berkeley National Laboratory)TRILLIONS OF KILOWATT HOURS’08 ’15 ’201086420CHINA ELECTRICITYCONSUMPTION
  11. 11. 10No.2Chinawill bedependent onfossil fuelsfor theforeseeablefuture.Given China’s significant coal re-serves, it is likely that fossil fuels willcontinue to dominate the country’senergy portfolio. Coal supplied 72%of the energy that China consumedin 2009, followed by oil with 17%,hydro with 6%, and natural gas with3%. Chinese coal consumption isexpected to rise 35% by 2020.China depends on coal for about80% of its electricity generation.Starting in late 2002, China beganto experience coal shortages as aresult of the country’s dizzying eco-nomic growth. “As brownouts andblackouts hit most of the provinces,a sense of crisis gripped the coun-try,” energy historian Daniel Yerginwrites in his 2011 book The Quest.“Factories were working half-daysor even shutting down because ofshortages of energy, while sales ofdiesel generators soared as desper-ate industrial enterprises resorted tomaking their own electricity.” Concerns about energy short-ages have encouraged China’sstate-owned oil giants to step uptheir domestic oil exploration effortsand to tap international sources aswell, often via joint ventures withinternational oil companies in Africa,Asia, North America, and elsewhere.Yergin predicts that by 2020, Chinawill pull ahead of the United Statesand become the world’s biggest oilconsumer.
  12. 12. 11China Depends on Coal for about 80%of its electricity generation.TOTAL ENERGYCONSUMPTION BY FUELQUADRILLION BTUsSources: 2008: Derived from U.S. Energy Information Administration (EIA);International Energy Statistics database (as of March 2011). Projections:EIA, World Energy Projection System Plus (2011).COALLIQUIDSHYDROPOWER ANDOTHER RENEWABLESNATURAL GASNUCLEAR2013TOTAL114.72020TOTAL140.577.385.627.715.821.99.34.51.77.14.3
  13. 13. No.3China’sfossil fueldependencecarries heavyenvironmentalcosts.China’s heavy reliance on fossil fuelsis putting significant pressure onpublic health and the natural environ-ment. Environmental degradation,pollution, and associated healthproblems cost an estimated 11% ofChina’s annual GDP, according toresearch by Lawrence LivermoreNational Laboratory. China has sixof the 10 most polluted cities in theworld. Acid rain affects a third of thecountry’s territory. More than three-quarters of the river water flowingthrough urban areas is unsuitablefor drinking or fishing, according toresearch by Council on ForeignRelations scholar Elizabeth Economy,an expert on Chinese environmentalissues.China’s main environmentalchallenges include flooding, deserti-fication, water scarcity, dwindlingforest resources, and populationgrowth. Deserts cover 30% ofChina’s territory, and the desertscontinue to spread. For China, mak-ing progress on the energy conser-vation and clean energy productionfronts is quite literally a matter of lifeand death.12
  14. 14. 1350403020100Sources: History: U.S. Energy Information Administration (EIA); International Energy Statistics database (asof March 2011). Projections: EIA; Annual Energy Outlook 2011; National Energy Modelling System; WorldEnergy Projection System Plus (2011).’05 ’10 ’13 ’15 ’20 ’25 ’30 ’35CARBON DIOXIDE INBILLIONS OF METRIC TONSREST OF WORLDCHINACHINA AND WORLD CARBONDIOXIDE EMISSIONS
  15. 15. China recognizes that its energyneeds can only be met by an “all ofthe above” energy strategy. It mustinclude conservation, restructuringthe energy production system, andsmart, sustainable exploitation ofall energy sources, including fossilfuels, hydro, nuclear, and renew-ables. According to the govern-ment’s recent energy policy whitepaper: “China will continue to takethe Scientific Outlook on Develop-ment as its guiding principle, andwork hard to transform its develop-ment pattern, giving prominenceto building a resource-conservingand environment-friendly society. Itrelies on scientific, technological andsystem innovation to raise efficiencyin all aspects of energy utilization,further develops new and renewableenergy resources, and promotes theclean and efficient development andutilization of fossil energy resources.”Focus onconservationChina is making significant prog-ress on the conservation front. Thecountry’s energy consumption grewby 5.82% a year from 1981 to 2011,according to government data,underpinning average annual GDPgrowth of 10%. From 2006 to 2011,energy consumption per 10,000yuan of GDP dropped by 20.7%,saving the energy equivalent of 710million tons of standard coal.A number of state initiatives havehelped move the needle on energyefficiency, including phasing outinefficient industrial programs, raisingminimum efficiency standards forbuilding materials and construction14What ChinaIs DoingShenxianghui/Imaginechina
  16. 16. methods, mandating better automo-bile fuel economy, and more. “Start-ing in 2005 the government reallybegan paying attention to efficiency,”says Bo Shen, a Beijing-based re-searcher in the China Energy Groupat Lawrence Berkeley NationalLaboratory. “Energy efficiency is themost important resource we haveat the current stage when renew-able energies can’t meet demandby themselves because of cost andavailability issues.”As the saying goes, what getsmeasured gets managed. To thatend, Bo has been working on policyrecommendations designed to helpthe Chinese government develop aconsistent program of energy auditsfor businesses across the coun-try. Consistent auditing helps thegovernment understand how energyis being used in different sectors.It also helps enterprises track how15
  17. 17. much energy they procure, howthey use energy, and where energyis leaking.In the past, however, authoritiesconducted energy audits sporadi-cally, usually in order to comply withvarious short-term governmentmandates. Auditing tended to stopwhen the program ended, making itdifficult to track energy consumptiontrends over time. Going forward, Boargues, the government needs long-term, concerted policy mechanismsto manage energy audits. “We needmore organization at the nationalgovernment level,” he says.China is aggressively implement-ing energy-saving initiatives such asefficient boilers, building construc-tion and lighting equipment, alongwith smart grid technology for thecountry’s massive power genera-tion and transmission network. Thegovernment has strengthened build-ing codes, and as a result buildingshave become more efficient in termsof both their design and their energyperformance. As in the UnitedStates and other Western countries,green labeling initiatives providestandardized criteria that determinewhether a new building can belabeled energy efficient.For its part, DuPont currently pro-vides technology that helps Chinesemanufacturing plants operate moreefficiently. DuPont uses the sametechnology in its own manufactur-ing facilities in China and around theworld. Each plant sets energy con-servation goals and tracks energyproject data in a centralized data-base. Through this process of simplegoal setting and planning, DuPonthas been able to achieve continuousimprovement in energy efficiency.Starting in 2008, DuPontlaunched an internal energy con-servation program called the BoldEnergy Plan (BEP) in response tosoaring global energy prices thatwere seriously impacting productioncosts. At that time, the company’sgoal was to reduce its total energybill by US$202 million (23%) by2012. DuPont surpassed that goal,recording cumulative energy savingsof US$230 million (26.5%) by theend of 2012. In China, 18 large-scaleDuPont factories joined BEP, ac-cording to Carl Chen, Energy Centerof Competency Leader for DuPontAsia Pacific. In 2011 and 2012,two DuPont operations in South16Wind is the third-largest sourceof power in China, second only tothermal power and hydropower,and surpassing nuclear power.
  18. 18. China received energy conservationawards from local governments. “Atthe beginning of every year, fac-tories joining the energy programset up their energy-saving goaland enter the value into DuPont’senergy-saving system,” says Chen.“This system automatically collectsdata that reflects the performanceof each factory, each region, andeven DuPont in saving energy.”Focus oninnovationChinese companies are innovatingin many areas of energy produc-tion and distribution. The ChineseMinistry of Science & Technologyoperates more than 100 academiesthat conduct clean tech research,according to a recent article inForeign Affairs. Major Chinese en-ergy companies such as Huaneng,the XinAo Group, Shenhua, StateGrid, and CNOOC have used statefunding and their own resources todevelop thin-film solar technology,biofuels, batteries, wind technolo-gies, efficient vehicles, coal gasifica-tion and carbon capture technolo-gies, shale gas extraction, and smartgrid technologies, among others.Much of this technology hasscaled very rapidly with help fromthe Chinese government. In 2006,for example, the government es-tablished a price support policy foron-grid wind power in accordancewith the Renewable Energy Law,according to Shi Dinghuan, a StateCouncil member who also chairs theChina Renewable Energy Society. Bythe end of 2012, on-grid wind powercapacity had grown to more than 60gigawatts, making China the world’sleading wind power producer. Todaywind is the third-largest source ofpower in China, second only tothermal power and hydropower, andsurpassing nuclear power.BiofuelsChina’s vast agricultural sector hasspawned an important biomassenergy sector. For the generationof electricity, more than 20 millionfarmers rely on biogas and sharedbiogas digesters to meet their dailyenergy needs across the country.China is currently developing large-scale biogas digesters in collabora-tion with poultry and dairy farms.Shi Dinghuan points to the DeqingRanch, a major producer of chicken18
  19. 19. 19eggs on the outskirts of Beijing thathas built a biomass system thatconverts its trash into electricity.China also uses various kinds ofstraw to produce ethanol, and trashto produce biodiesel.DuPont is an active player in theglobal transportation biofuels sectorvia its offerings in starch-or grain-based biofuel-processing aids aswell as in the development of novelbiomass-based biofuel productiontechnologies. DuPont producesstarch processing enzymes andfermentation control additives thatallow grain-based ethanol producersworldwide, and of course in China,to optimize the efficacy of theirprocess. The company’s Accelle-rase®enzyme product line convertstreated biomass into sugars, a keystep in the production of cellulosicbiofuel, thus increasing the ethanolyield per unit of feedstock. In China,DuPont is in discussions with strate-gic partners about the commercial-ization of the technology.SolargrowthBecause solar energy is inexhaust-ible, photovoltaic (PV) power is themost important renewable energysector. China has been the world’sleading solar panel manufacturersince 2005. Today, annual produc-tion of solar panels in China ac-counts for more than half of globalproduction. In 2011, China estab-lished a price support policy foron-grid PV power, which greatlystimulated the growth of installedsolar capacity. In January, the gov-ernment announced that installedPV capacity would more than doublethis year over 2012, to 10 gigawatts,according to a Reuters report.The government has already builtmajor solar installations in areas ofwestern China that have abundantland and plentiful sunshine. Thistechnology has huge potential inrural China because solar pumpsbecome feasible once electricity isavailable. “Building PV plants in thedesert not only can generate powerbut also may improve its ecosys-tem,” says Shi Dinghuan. “Onceelectricity is available, solar pumpsbecome feasible. They can pumpunderground water for irrigation andplanting grass. Solar panels canalso provide shade for the ground,stopping moisture evaporation.”China led the world with $52billionin clean-energy investment in 2011.
  20. 20. On the more densely popu-lated eastern coast, the policy hasbeen to encourage distributedsolar energy production via roof-top PV panel systems. In 2009 theChinese government launched itsGolden Sun program, which offeredsubsidies amounting to 50% of theinitial investment for any solar deviceinstalled on a roof, according toZheng Xiaoqiang, vice president andCOO at Yingli Green Energy, a solartechnology company based in Baod-ing, a city in the northern provinceof Hebei. “The government hasbecome aware of the role renew-able energy plays in future economicgrowth,” he says.GD Solar has achieved significantsuccess in the distributed solar en-ergy production sector. Last year theJiangsu-based company launcheda major pilot project in Shanghaicalled the Jinqiao Smart PV Powerproject. GD Solar sources many ofits PV materials from DuPont. “As aPV expert, DuPont is well versed inall kinds of materials,” says GD Solarchairman Li Hongyuan. “DuPont hascollected a lot of data about on-sitepractical applications to provide uswith a sound theoretical basis whenit comes to selecting the most suit-able materials.”Solar thermal energy is alsodeveloping rapidly nationwide. “Inboth cities and rural villages, solarwater heaters are everywhere tomeet people’s daily need for hotwater,” says Shi Dinghuan. “Theyhave replaced coal power as far ashot water is concerned.”DuPont has major efforts underway to reduce the electricity gen-eration costs of China’s PV sector.The company’s PV materials includeconductive silver pastes, encap-sulant materials, and backsheetmaterials. On the PV research front,DuPont focuses on enhancing ef-ficiency and longevity, and reducinginstallation costs.Effective reduction in electricity-generation costs per watt will en-able PV power to achieve grid paritysoon, which will make solar powercompetitive with fossil fuels andother forms of electricity.In Golmud, a city in the north-western province of Qinghai, ChinaPower Investment Corporation (CPI)recently built a 320-megawatt solarplant that is currently the world’slargest solar power project. The20Photovoltaic capacity is expected tomore than double in 2013, to10GW.
  21. 21. 21farm uses a number of DuPontproducts, including silver metal-lization pastes for increased poweroutput and backsheet materials forlong-term solar panel protection.“We believe that DuPont’s productsare reliable,” says CPI executive XieXiaoping. “Ultraviolet rays are stron-ger on the Qinghai-Tibetan Plateaubecause of its high elevation. In thisenvironment, we have to guaranteethe life span of our components, sowe use DuPont products.”
  22. 22. RenewablePartnershipsHot water notwithstanding, coal stilldominates China’s energy portfolio.Coal-fired power plants generatemuch of the country’s air pollution.For these reasons, any sensibleenergy strategy must focus onimplementing cleaner coal technol-ogy. Since 2006, China has shutdown thousands of small, inefficientcoal generation plants, according toa recent speech by Liu Zhan of theChina Power Investment Corpora-tion. China is also building newsuper-critical coal plants based oncarbon capture and sequestrationthat generate far less particulateand greenhouse gas emissions thantraditional plants.The U.S. and China have col-laborated extensively to developclean coal technology. PeabodyEnergy is part of the consortiumthat is building GreenGen, a $1billion, 650 megawatt coal plantnear Tianjin. Projected to producenear-zero emissions, the integratedgasification combined cycle plantwill also serve as a carbon manage-ment research center. And that’sjust one example. Nowadays thereare creative partnerships betweeninternational and Chinese partnersacross many renewable sectors. Forexample, Sinopec Group, China’slargest oil refiner, is in partnershipwith Icelandic geothermal developerOrka Energy to expand China’s geo-thermal heating capacity. The goalis to expand geothermal heating toat least 100 million square meters ofhouse floor by 2020.China currently leads the worldin the rapid adoption of renewableenergy technologies. One exampleis wave power, a power generationtechnology that harnesses the ener-gy of ocean waves. Israeli wave pow-er company SDE has completed itsfirst commercial-scale wave powergeneration plant in Guangdong, onthe South China Sea coast, and hasthree more plants in the works nearGuangzhou. SDE’s technology usesbuoys that bob up and down withthe waves. Energy from this motionand from the ebb and flow of tidesgets transferred to a series of pistonsthat transmit power to a generator,thus producing electricity. In thissector China is outpacing developedcountries such as the United States,which currently has zero functioning22
  23. 23. 23wave power plants.Smart grid technology is an-other major growth area. GE EnergyServices and State Grid, China’sleading utility, are partnering inseveral projects designed to supportChinese energy demand by devel-oping standardized technologiesfor electric vehicle charging, theintegration of large-volume en-ergy storage systems, transducers,distributed electric resources, andmicro-grids. Meanwhile, U.S. energystorage company ZBB Energy andits Chinese joint venture company,Meineng Energy, have secured con-tracts to provide advanced energystorage and control technologies forinstallation at an energy storage testcenter and a government buildingdemonstration site. The goal hereis to demonstrate how advancedtechnology can deliver consistentpower to buildings from an inconsis-tent grid.DevelopingGlobal EnergySuppliesChina has enlisted a number ofinternational joint venture partners,including Hess, GE Oil & Gas, DevonEnergy, and others, to help build outits onshore and offshore productioncapacity. In recent years, China hasalso invested some $65 billion inenergy projects worldwide, rangingfrom oil-sands production in Albertato energy equipment manufacturingin Brazil. In 2012, for example, Sino-weita/imaginechina
  24. 24. pec and Oklahoma-based DevonEnergy signed a $2.5 billion deal toexplore for oil and gas in emergingshale fields in North America. Lastsummer, CNOOC agreed to pay$2.1 billion for OPTI Canada, a pro-ducer that held a minority stake in alarge oil-sands project.The list goes on: In October2012, Sinopec acquired Royal DutchShell’s 80% stake in Pecten Cam-eroon Co., an African oil producer.That same month, Baoji Oilfield Ma-chinery Co. (BOMCO), a subsidiaryof China National Petroleum Corp.,established a joint venture with twoBrazilian companies, BRCP andAsperbras, to manufacture oil equip-ment in Brazil.Now that most of the world’sreadily accessible oil supplies havealready been tapped, the oil indus-try is increasingly focused on moretechnologically challenging extrac-tion projects deep offshore andin areas such as the oil sands ofwestern Canada. These wells tendto produce heavier crude with highconcentrations of asphaltene andparaffins that create fouling problemsin the tubular piping through whichthe oil flows, increasing downtimeand reducing productivity.In the Middle East, on the otherhand, oil companies are increas-ingly drilling “sour” crude that hashigh concentrations of hydrogensulfide and other corrosive agentsthat quickly rust out standard steelpiping. Historically the oil industryhas sought metallurgical solutions toall these problems, typically by usingexpensive alloys such as nickel toproduce thicker pipes that are moreresistant to fouling and corrosion.Epoxy-based coatings have alsobeen used successfully in some ap-plications, although they don’t workwell in highly corrosive environments.24Apphoto/meadgruver
  25. 25. 25China has invested some $65billionin energy projects worldwide,ranging from oil sands productionin Alberta to energy equipmentmanufacturing in Brazil.750600450300150075060045030015008063 4801 8061,5441,689ENERGY SOURCES BY COUNTRYSource: Energy Information Administration (EIA)2Renewables include: solar, wind, biomass,geothermal, hydropower and ocean resources,solid biomass, biogas and liquid biofuels.1Tonne means 1 metric ton or 1000 kg. Theunit of account adopted by the IEA is the tonneof oil equivalent (toe) which is defined as 107kilocalories (41.868 gigajoules). This quantityof energy is, within a few percent, equal to thenet heat content of 1 tonne of crude oil.3Includes: crude, NGL, and feedstocks. NGLsare natural gas liquids or the liquid orliquefied hydrocarbons produced in themanufacture, purification and stabilisation ofnatural gas. These are those portions ofnatural gas which are recovered as liquids inseparators, field facilities, or gas processingplants. NGLs include but are not limited toethane, propane, butane, pentane, naturalgasoline and condensate.THOUSAND TONNES1 OF OIL EQUIVALENT’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10COALOIL PRODUCTS3NATURAL GAS’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10RENEWABLES2NUCLEARCHINAU.S.BRAZILFRANCE
  26. 26. A new science is needed to secureChina’s energy future. The countryneeds to conserve today’s resourceswhile developing the cleaner alterna-tives of tomorrow. Science-basedinnovations will help make China’sconsumption of valuable energyresources more efficient. Chinawill need to consume all its energyresources—oil, coal, solar, wind, orbiofuels—with greater efficiency. Thisnot only conserves valuable suppliesbut also cuts costs. Science-basedinnovations allow China to use lessenergy to drive multiple systems thatpower the modern world.The development of viable energysolutions requires collaboration be-tween scientists and policymakers,communities, and private sectors.Those with the know-how, resourc-es, and responsibility to addressChina’s energy needs must worktogether to create the policy environ-ment and funding mechanisms thatcan transform scientific innovationsinto viable new energy resources.DuPont maintains that energysolutions are truly sustainable onlywhen they are economically feasibleas well as environmentally sound. Ina market-driven society, cleaner, re-newable energy sources will not suc-ceed if the cost to produce and usethem is higher than existing options.Applied science can help make re-newable options economically viable,so that China is not forced to choosebetween sustainability and economicsecurity.GreenercarsDuPont has worked extensivelywith selected partners from China’sautomotive industry in developingelectric insulation solutions with Du-Pont™ Nomex®that enable electricvehicles to operate with higher reli-ability. Today, BYD, a leading electricvehicle manufacturer in China, usesEIS (Electrical Insulation System)featuring Nomex®in its productionof Electric Vehicle (EV) and HybridElectric Vehicle (HEV) traction mo-tors. The company has also part-nered with Chery Automobile Co. aChinese auto manufacturer, to helpcreate lighter, more fuel-efficient carengines.At the DuPont China R&D Centerin Shanghai, engineers use sophisti-cated computer-assisted engineer-ing and design technologies (CAE/26A Vision forthe Future
  27. 27. 27CAD) to model lightweight automo-tive parts. Fuel consumption goesdown significantly as you subtractfrom the total weight of a vehicle.“We can usually save about 30%to 50% in weight,” says Ryan Peng,automotive marketing manager, Du-Pont Performance Polymers, GreaterChina. “Roughly speaking, for every50 kilograms that we save in weight,we can reduce carbon emissions byfive grams, while also improving fueleconomy by about 2%.”DuPont engineers save weight byreplacing conventional metal partswith components that the companyengineers using a short-fiber, rein-forced nylon resin called DuPont™Zytel®. “We want to improve fuelefficiency to allow people to continuedriving the cars they want. The keyis making the car frame lighter, butstill safe and sturdy,” says Tony Su,president of DuPont Greater China.Each part has specific designconstraints. For example, oil pans siton the bottom of the engine, closeto the road, so they need to with-stand impact from stones and otherprojectiles that can cause leakageand failure. Before the oil pan evergets manufactured, engineers useCAE/CAD software to calculate itsstructural stiffness. They model thedeformation that would result froma stone hitting the pan at variousspeeds. DuPont engineers alsosimulate the manufacturing processto determine how the liquid plasticwill flow into the mold that creates
  28. 28. the actual oil pan. All this computermodeling allows the engineers topredict failure points and adjust theirdesigns to avoid failure.Once the DuPont engineeringteam has molded a physical part,they subject it to even more testingin the real world. They test it in ananechoic chamber to determine howmuch noise and vibration it will pro-duce when the vehicle is in motion.They also use impact test equipmentthat fires steel balls at the compo-nents. With the help of high-speedvideo capture equipment, DuPontengineers can figure out whether thecomponent is tough enough to takea beating on Chinese roads.Cooler,cleanergeneratorsDuPont provides specialty fluids forthe machinery that generates elec-tricity from China’s dams. DuPontVertrel®XF fluid is a nonflammablehydrofluorocarbon with zero ozonedepletion and low global warmingpotential. It is currently used to cooltwo of the hydraulic generators atthe world’s biggest hydro facility, theThree Gorges Dam hydroelectricpower plant in Hubei province.The Three Gorges plant currentlyhouses 32 hydropower generators,each of which produces 700 mega-watts of electricity. They operatebetween four to six months everyyear, depending on the water supply,and are the world’s largest genera-tors by output. Heat naturally riseswith output, creating extreme coolingdemands that are difficult to satisfywith traditional water- and air-basedcooling systems.That’s why two of the newestgenerators use an innovative cool-ing system developed by the ChinaNational Electric Apparatus ResearchInstitute. Each generator containsthree and a half metric tons ofVertrel®XF. When the generator pro-duces heat, the Vertrel®XF changesfrom liquid to gas, absorbing a greatdeal of heat while maintaining aconstant temperature. It then travelsthrough a condenser and turns backinto liquid that recycles through thegenerator, beginning the coolingcycle all over again.Bettersolar panelsOnly by increasing efficiency, ex-28Only by increasing efficiencyand reducing installation costscan the photovoltaic industry providethe cheapest electricity.
  29. 29. 29tending lifetime, and reducingoverall installation costs can thephotovoltaic industry providethe cheapest electricity moreeffectively. For this reason,DuPont has made a majorcommitment to the ChinesePV sector. The company hasestablished R&D centers inChina and also built factories inDongguan and Kunshan, ac-cording to Walt Cheng, manag-ing director of DuPont Electron-ics and Communications forGreater China. The productionequipment in DuPont PV R&Dfacilities simulates the produc-tion lines of its clients. So whenPV manufacturing clients submitquestions to DuPont researchers,they can provide solutions that meetclient needs precisely. DuPont canthus help enhance their productionefficiency, conformance rate, andquality. The company also developssolutions to reduce overall costs.From R&D to production, aninvestment in the whole value chainenables DuPont to provide the bestproducts in the market to help itsclients quickly improve their produc-tion efficiency, while also increasingservice life and reducing installationcosts. DuPont is currently work-ing with the Shenzhen–Hong KongInnovation Circle to build the world’slargest thin-film photovoltaic rooftopin China. The company is alsopartnering with Chinese photo-voltaic panel manufacturer YingliGreen Energy, which uses DuPont™Solamet®metallization paste andDuPont™ Tedlar®polyvinyl fluoridefilm for the protective backsheetlayer in its PV modules. “We havea good relationship with DuPont,with a very large supply,” saysYingli COO Zheng Xiaoqiang. Yingli2,263’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10PRODUCTIONCHINAU.S.BRAZILFRANCE’09 ’10 ’09 ’10 ’09 ’10 ’09 ’10IMPORTS2,1001,8001,5001,2009006003000ENERGY BALANCE:IMPORTS VS. PRODUCTIONTHOUSAND TONNES1OF OIL EQUIVALENTSource: Energy Information Administration (EIA)1Tonne means 1 metric ton or 1000 kg. The unit of account adopted by the IEA is the tonne of oilequivalent (toe) which is defined as 107 kilocalories (41.868 gigajoules). This quantity of energy is,within a few percent, equal to the net heat content of 1 tonne of crude oil.
  30. 30. PV panels are now at work in theworld’s largest solar-power plant, asolar farm in western China.A major challenge facing theglobal photovoltaic industry is thatmaterials and infrastructure formanufacturing PV components mustremain at international standards,even while the market price of PVproducts continues to decline. InChina, DuPont helps local manufac-turers produce long-lasting PV panelsusing less material. “The efficiencyof our electrical conductive pasteshas increased by 0.4% to 0.5% everyyear since 2008,” says Cheng. “Thisreduces our electricity-generationcost per watt. As a result, we havemade huge strides in reducing costsfor a kilowatt-hour.” RenewabletextilesPetroleum-based synthetic fibermakes up a growing share of textileproduction in China’s vast textile andapparel industry. Faced with the real-ity of limited petroleum resources,the Chinese government has beenencouraging local textile manufactur-ers to explore new bio-based materi-als made from renewable plants.“The promotion of such materialsmeans investing in social responsibil-ity,” says Li Binhong, director of theChina Textiles Development Center.“And that is the responsibility of thewhole consumption chain, includingdevelopers, manufacturers, buyers,apparel brands, and consumers.”DuPont has also introducedan advanced bio-material to theChinese market. In Zhuhai City, atown in Guangdong province, YuhuaPolyester Co. Ltd. is manufactur-ing DuPont™ Sorona®polymer, arenewably sourced, fiber-grade ma-terial used for carpeting and textilegarments. Sorona® polymer allowsmills and designers to reap the ben-efits of renewability from a versatile,high-performance material. Soro-na® polymer contains 37% annuallyrenewable plant-based ingredients.Even better is its environmental foot-print. Producing Sorona® polymeruses 30% less energy and lowersgreenhouse gas emissions by 63%the government is encouraging theuse of bio-renewable materialsthroughout China’s textile industry.
  31. 31. 31compared with the production of atypical petroleum-based substitutesuch as nylon.Sorona® renewably sourced fiberis used in residential and commercialcarpets, apparel, and automotivemats and carpets. With the highestbio-based content in the syntheticcarpet fiber market, Sorona® polymeroffers durability and stain resistance.One of the first high-performancefibers derived from rapidly renewablematerial, Sorona® polymer continuesDuPont’s impressive record of textileinnovation.China’s textile industry is nolonger just a leading manufacturingcenter for the international market.It’s becoming a huge domestic con-sumption market as well. As a stra-tegic trend in China’s 12th Five-YearPlan, the government is encouragingthe use of bio-renewable materialsthroughout China’s textile industry.K-Boxing, a domestic men’s apparelbrand that’s especially popular insecond-tier Chinese cities, hasalready adopted fabrics made withSorona®polymer.This co-marketing initiative hashelped K-Boxing become a sourceof sustainable products in thatmarketplace, and has allowed it todifferentiate its garments from thoseof competitors. The broad but stillniche market for sustainable apparelis growing, and Sorona® polymerhas helped K-Boxing gain a strategicfoothold in that market. “I was at-tracted to the material,” says HuangLizhong, a K-Boxing designer. “Oneof the advantages of Sorona®is thatit can be made into short fiber orlong silk, and can be mixed with alltypes of fabric. So it can be usedto make various tatted and knit-ted linings. It has a wide range ofapplications and sends out a verypositive message of environmentalprotection.”Because of the significant roletextiles play in the Chinese economyand manufacturing sector, it is vitalfor China to focus its textile manu-facturers on renewable and efficientprocesses and products. So-rona® renewably sourced polymer isa good example of what is possibletoday, and what will come tomorrow.
  32. 32. China’s economic growth dependson its ability to power that growth.The country faces huge challengesin building a sustainable, broad-based energy sector to fuel its grow-ing economy and create a betterlife for its people. As China takesits rightful place as an economicsuperpower, it will consume a grow-ing share of global energy supplies,driving up energy prices and puttingstress on ecosystems worldwide. Asa result, the international communityhas every incentive to help Chinadevelop innovative, sustainable solu-tions to its energy needs.Finding these solutions willrequire creative thinking and invest-ment from a global coalition ofstakeholders, including the Chinesegovernment, foreign governments,multilateral organizations, NGOs,scientists, Chinese corporations, andmultinational corporations.“The world’s energy laboratorywill be a busy place in coming years,and DuPont is ready to do its part,”says chair and CEO Ellen Kullman.“We’ve been using science andcollaborative problem solving to im-prove the human condition for morethan two centuries. We look forwardto helping China deploy energy tech-nologies that will underpin the health,safety, and prosperity of its citizensfor decades to come.” ●32ConclusionView the video ofDuPont’s contribution tothe future of energyin China.
  33. 33. IN Partnership with:

×